Investors who buy which type of bond will be guaranteed a capital loss if they hold the bond to maturity?

Name: Investors who buy which type of bond will be guaranteed a capital loss if they hold the bond to maturity?
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Question

Quizplus · Accepted Answer

Premium bonds are purchased above their face value, and at maturity, they pay back the face value. Therefore, if an investor holds a premium bond to maturity, they will receive less than what they initially paid, resulting in a guaranteed capital loss.

Investors Who Buy Which Type of Bond Will Be Guaranteed